MESSAGE FROM DR. LUCIO C. TAN

To my Airphil Express Family,

I wish to share with you a very important development in Airphil Express' corporate existence.

Last night, San Miguel Corp. president Ramon S. Ang and I, signed an investment agreement which paves the way for SMC's entry into Airphil Express.

This development bodes well for the airline as one of the country's fastest growing low-cost carriers. The expected infusion of fresh capital and planned acquisition of new fleet are expected to result in better service to the flying public and more secure jobs.

I am proud to say that over the past several years, Airphil Express has displayed competitive edge in the market clamoring for affordable yet efficient airline service. It has been a tough and uphill climb, but we managed to survive in this challenging airline environment.

SMC's entry should further boost efforts towards ensuring synergy between our two companies. With this mindset, I believe we are entering into a new and exciting phase in our corporate existence.

I look forward to your continuing support in making Airphil Express the leading low cost carrier in the country.

DR. LUCIO C. TAN

Airphil Express Reinforces Presence by tapping market in the North

Airphil Express, the fastest growing budget airline in the country, further strengthens its foothold in the industry by opening new domestic and international routes, new aircraft, value-for-money offers that contributed to the surge of its market share to 20% this year. It has also extended its operation base to Pampanga by signing a contract with Clark International Airport Corporation (CIAC).

“Airphil Express will soon be offering domestic and Southeast Asian routes based in the Clark international airport, to serve the growing number of travellers based in the northern regions of the country,” says Alfredo Herrera, Airphil Express senior vice president for marketing and sales. “This is all in line with our expansion process and consistent with our growth strategy to solidify our position as a key player in the local budget airline market.”

With eight Airbus A320, three Q300s and five Q400 under its wing, the company is expected to increase operations thus create new itineraries as Airphil Express. One more new Airbus A320 is anticipated to come before the year ends. Airphil Express also boasts one of the youngest and most reliable fleets of aircraft, composed of Airbus A320, Q300 and Q400 units. With more aircraft acquisitions recently, the airline has been able to expand routes as well. Domestically, Airphil Express has commenced Manila-Tacloban flight, and will yet to launch Manila-Ozamiz and Davao-Iloilo routes. A Cebu-Hong Kong flight also debuted just last July.

Currently, Airphil Express flies to 26 domestic and 2 international destinations along with selected domestic flights originating from Davao and Zamboanga.

Airphil Express seeks to increasingly corner a considerable share of the budget airline market by offering budget travellers with compelling value propositions. Among these is the free 15-kilo check-in luggage allowance plus 7-kilo hand-carry baggage that used to be standard among budget carriers. “This is an extremely important provision that has been taken for granted and now much appreciated by our passengers,” explains Herrera. Customers can also avail of other conveniences that are usually only associated with large full-service international airlines, such as travel insurance, online reservations and seat selection, and online check-in.

One of the most beneficial value-added offers of Airphil Express is an airfare discount for students. “We offer 20 percent discount on airfare for bonafide, currently enrolled students,” says Herrera. “We have identified and zeroed in on this valuable market segment of student travellers, who are mostly based in provinces and who study or work in Metro Manila. This is our way of helping create value and improve the lives of our valued passengers.”

A customer loyalty program has also recently been launched, dubbed APX Rewards, where loyal Airphil Express travellers can receive a free ticket after logging in 10 trips under the program. “We are glad that the budget airline industry in the Philippines is burgeoning, and we are optimistic of its further growth in the next few years. We are encouraging more and more Filipinos to enjoy local and international travel through promotions such as these,” adds Herrera.

To know more about the latest travel promotions and services of Airphil Express, simply visit www.airphilexpress.com, follow us on www.twitter.com/airphilexpress or Like Us on facebook.com/airphilexpressph.

Airphil Express beefs up fleet with a new Airbus aircraft

A new Airbus A320, designed with Airphil Express livery, taxied into the NAIA last November 18 with the airline's own pilots in command. The arrival of the aircraft represents another determined step towards meeting the Filipinos' growing demand for value-oriented air travel service. With its wider seats, bigger legroom and elbowroom for added comfort, and generous carry-on baggage space, the new 180-seater Airbus A320 is expected to offer enhanced cabin experience.

Alfredo Herrera, SVP for Marketing and Sales, says, "We aim to play a dominant role in the industry by bringing in more tourists around the country while beefing up our presence in the region." As part of its expansion plans, Airphil Express is slated to purchase more than half a dozen new A320 aircrafts starting this December until late next year.

With eight Airbus A320, three Q300s and five Q400 under its wing, Airphil Express is expected to increase operations and create new itineraries. Two recently inaugurated Airphil Express routes are the Manila-Cotabato and Manila-General Santos. The Cebu-Hong Kong flight, which opened a few months ago, also presents opportunities for frequent leisure and business trips between the two destinations.

As more and more Filipinos discover the joys of travel, local budget airlines strive to service the growing market, helping drive Philippine tourism to new vibrancy. Domestic travel is pegged at 74 percent this year, up from 35 percent last year. Nine months into the fiscal year, Airphil Express has already grabbed 20 percent of the market share. Just over a year after its re-launch, the airline is now considered as the country's fastest growing budget carrier.

Airphil Express provides unmatched experience for passengers who seek affordable, efficient and pleasant service (even before they board the plane) through value-added features like Web Check-in, Travel Insurance, Seat Selector and Pre-Paid Baggage. Among budget carriers in the country, Airphil Express prides in being the only airline that gives up to 15-kg free baggage allowance, aside from the additional 7-kilo free hand carry. Airphil Express also started and became the first budget airline to offer the 20% student discount on all published fares for its domestic routes, including select promotional fares.

Another first is the company’s “manage booking” feature, an online service which allows Airphil Express passengers to make flight adjustments like rescheduling and rerouting of previously booked tickets, on their own thru, www.airphilexpress.com. The company also has an ongoing APX Rewards program, a free flight program that allows a customer to exchange ten (10) used boarding passes bearing his/her name for a one-way, free ticket to any local destination of his/her choice.

To know more about the latest travel promotions and services of Airphil Express, simply visit www.airphilexpress.com, follow us on www.twitter.com/airphilexpress or Like Us on facebook.com/airphilexpressph.

AIRPHIL EXPRESS NOW FLIES TO EXCITING HONG KONG FROM CEBU

Passengers were treated to a festive Chinese send-off when Airphil Express made its first flight to exciting and progressive Hong Kong from Cebu’s Mactan Terminal recently.

Hong Kong is home to a significant number of OFWs and remains an important neighboring international destination in terms of business and tourism, while Cebu is one the Philippine’s most crucial trade and leisure hubs. Connecting the two centers via Airphil Express represents another advance for the fastest growing budget airline and is seen to help drive growth in the Southern Philippine region.

To give an auspicious and rousing launch and to wish for the success of the new route, a lively and colorful lion dance performance was held at the boarding area. Passengers had a blast when the custom-made Chinese lantern, containing corporate and travel freebies was given a tug by Peter Y. Ong, President and CEO and Brian Hogan, Airphil Express Chief Executive Adviser, as it triggered a shower of prizes to lucky travelers: 2-roundtrip domestic tickets, 4GB USB, mouse pads, and slippers. Around 125 customers were on board the Airbus A320 that serviced the new route.

“We were quite enthusiastic about our first flight to Hong Kong,” shares Alfredo Herrera, Senior Vice-President for Marketing and Sales. “It is one of our kababayans’ favorite Asian places to visit, and with the entry of Airphil Express, it is now a top value destination. With the launch of the maiden flight of Airphil Express from Cebu, we hope our loyal, as well as new passengers, experienced a cultural celebration that gave them a good taste and glimpse of Hong Kong.”

Hong Kong is Airphil Express’ second international destination. The route is part of a substantially funded capacity-expansion program that includes adding another new Airbus A320 to the airline’s current fleet to service a robust Philippine travel market venturing more frequently to destinations in and outside the country.

With the opening of the Hong Kong route from Cebu, Airphil Express is expected to post the highest growth rates among Philippine budget airlines, continuing from its highly successful inaugural year as a rebranded carrier in 2010. Airphil Express is known to offer services and products that are valued by frequent flyers: good airfare deals for its domestic and international routes, and comfort-driven services like Web Check-In, Seat Selector, Travel Insurance, and Pre-Paid Baggage, as well as travel bonuses of as much as 15 kilos free baggage allowance and an additional 7-kilo free hand carry.

To know more about the latest travel promotions and services of Airphil Express, simply visit www.airphilexpress.com, follow us on www.twitter.com/airphilexpress or Like Us on facebook.com/airphilexpressph.

Airphil passenger volume doubles after 9 months

MANILA — Budget carrier Airphil Express said its passenger volume more than doubled in the first nine months of the year.

Citing data from the Civil Aeronautics Board (CAB), the airline noted that passenger volume soared by 143 percent or 1.6 million passengers to reach 2.72 million during the January-September period compared to 1.12 million in the same period last year.

Alfredo Herrera, senior vice president for marketing and sales of Airphil Express, expressed elation over this new development.

"We believe this continued expansion and growth of the company is due to the genuine value-added features and services we have been offering to the flying public since the company’s inception in 2010. Since then, we have upped the ante by introducing one of the youngest and most reliable fleets in the region," he said.

At present, the Lucio Tan-led carrier has also expanded its routes and is now serving 26 local destinations and two international flights.

Some of its most recently inaugurated local destinations include Manila-Tacloban, Manila-Ozamiz, Davao-Iloilo, Manila-Cotabato, and the Manila-General Santos routes.

Aside from the Manila-Singapore route, Airphil Express now also offers the Cebu-Hong Kong flight, which it opened just a few months ago.

Airphil Express now fastest growing carrier, grabs 19% market share

MANILA, Philippines — Airphil Express (APX) is expected to remain as the fastest growing low-cost carrier in the country despite the entry of new foreign airlines in the industry.

APX Senior Vice President for Marketing and Sales Alfredo Herrera said that while traffic growth from all Philippine carriers has increased by 11 percent in last year and would remain at double-digit this year, APX’s rise has been staggering

With the deployment of six A320s and eight Q300s/400s last year (its first full year of operations since its re-launch in 2009), APX’s market share has surged 353 percent to 1.9 million passengers in 2010. APX cornered 11 percent of the domestic market last year or nearly 4 times its market share of 2.9 percent in 2009, making it the country’s number three airline.

An independent industry think-tank, Center for Asia Pacific Aviation (CAPA), said APX’s rapid growth has come at the expense of the top two players that have seen their market share decline amid increasing competition from new players.

Following its capacity expansion, APX’s market share has so far surged to 19 percent. APX’s market share is expected to expand further with its plan to add six more A320s before the end of the year.

Herrera said customers have responded positively to APX’s expansion and they expect demand to follow with its programmed expansion in 2012 (additional 5 A320s) and 2013 (another five A320s) to complete its 20- aircraft, $250 million expansion approved last year.

CAPA said that APX would continue to post the highest growth rates among Philippine low-cost carriers in the coming years despite expansion from existing local players and the entry of new players such as by South East Asian Airlines (SEAir) and AirAsia Air Asia.

``While APX now competes with Cebu Pacific on most of its domestic routes and to Singapore, it has tried to differentiate itself by offering some frills such as free check-in baggage. APX markets itself as a budget airline that provides 'low fares with a premium travel experience'. For example, in launching services to Singapore, APX decided to operate out of one of Changi Airport’s full-service terminals instead of using the budget terminal used by Cebu Pacific, Tiger and SEAir,'' said CAPA in is latest report.

Airphil Express is Recognized for Top Aircraft Reliability in the Oceania Region

Airphil Express, the fastest growing budget airline in the Philippines, was recently awarded the top airline reliability performance award for the Q400* aircraft in the Oceania region by Bombardier, besting other airlines within this product category and region.

Airphil Express achieved the highest overall dispatch reliability, and placed first overall in the Q400* aircraft category for the Oceania region.

Bombardier applauded Airphil Express’ outstanding performance at a ceremony held during the company’s fourth annual Award Gala Dinner in Toronto, Canada.

“The winners of the Airline Performance Reliability Awards have achieved world-class performance over the past year. We congratulate Airphil Express, its management team and all its employees on their excellent results,” said Todd Young, Vice President, Customer Services and Support, Bombardier Commercial Aircraft.

“We are proud of this tremendous achievement and all of our employees who contribute daily to the success of our operation,” said Alfredo Herrera, senior vice president for Marketing and Sales

The recognition was based on a review of the reliability statistics for airlines operating Q400* aircraft that have achieved over 99% dispatch reliability.

Airphil Express currently operates the newest aircraft fleet in the country. The company has more than 23 local destinations from its Manila hub alone, and at the end of 2010 introduced its first international destination, Singapore, with plans to launch more overseas destinations in the near future.

Airphil Express is also the only budget carrier in the region offering great-value travel services such as a 15 kg free baggage allowance and an added 7 kg hand carry allowance. It also provides excellent travel assistance like Web check-in, travel insurance, seat selector, and pre-paid baggage.

For more details, visit www.airphilexpress.com, follow us on www.twitter.com/airphilexpress or Like Us on facebook.com/airphilexpressph.